Fitch affirms Priya

Fitch Ratings said it affirmed Priya Ltd.'s Rs. 210 million fund-based post-shipment export finance credit (enhanced from Rs. 200 million) and its Rs. 213 million non-fund-based limits (enhanced from Rs. 200 million) at F4(ind).

The agency said the ratings remain constrained by Priya's small scale of operations in India's information technology distribution space, its limited margins and risks on account of competition, obsolescence and product concentration, all of which could have a negative impact on the company's interest servicing capability.

Despite these factors, the ratings are supported by the improvements in Priya's working capital, which are reflected in the company's positive cash from operations and its adequate capacity for meeting financial obligations in 2010, Fitch said.

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